HEALTH CARE 5
Financinghealth care and international Health systems
Spendingon health care means that a part of the country’s GDP will bechanneled to the health sector. GDP is encompasses a number ofessential aspects in the nation investment inclusive. Investment isthe sole factor that determines the growth and stability of thatcountry’s economy. Huge spending on healthcare sector will,therefore, reduce amount of resources to be invested (Bradley& Taylor, 2013).This is a clear indication that for the economy to be stable and torecord a steady growth considerable spending on health care must bedone so as to increase the resources to be channeled to investments.
GDPcomprises of four distinct components. Consumption is one of thecomponents of GDP. It forms the largest component. They can also betermed as personal expenditures and they are in the categories ofservices, durable goods as well as non-durable goods. Examples ofthese expenditures include medical expenses, food and rent amongothers (Bradley& Taylor, 2013). Investment is another component which entails things like businessinvesting in equipment, constructing new mines, factories purchasingequipment and machinery among others. Government spending is thethird component. This is the sum of all the government expenditureson services as well as final goods such as public servants’salaries, purchasing weapons for military among others. Exports formanother component which encompasses the gross exports done by acountry. The final component is imports which tend to be deductedbecause imported goods tend to be inclusive in either investment orgovernment spending or consumption.
USApays out the highest proportion of its GDP for a number of reasons.One of the reasons is that most of the health care facilities areprivately owned. This made the healthcare in USA expensive andexploitative to the Americans. In the attempts of saving theAmericans the government had to spend heavily (Okorafor& International Development Research Centre, 2010).USA is the leading nation in medical innovations hence much fundsrequired to facilitate these innovations. There are also high numbersof accidents and chronic diseases which requires critical attentionhence the government being forced to offer a helping hand thusincreasing government spending.
Thereis a high possibility of increase in spending in prescription drugs.There are various causes of this. One of the reasons is increase involume of both the prescriptions as well as the population demandingthe prescriptions. The prescriptions’ mix is changing consistentlyfrom less expensive to more expensive. The technology of making thesedrugs is becoming improved day after day which tends to be moreexpensive that the previous one hence causing an increase in the costof prescriptions (Okorafor& International Development Research Centre, 2010).
Insome parts of the world good health and high mortality is experiencedwhile in others the vice versa of this is taking place. Variation ininvesting in medical sector among nations is one of the reasons forthis aspect. Some countries have adopted increasingly sophisticatedand innovative health care with improved diagnosis, detection andtreatments while others are using the traditional and outdated healthcare (Riley,2001). This shows that the country with up to date technology is likely tohave better health than the other nations. Mode of nutrition is alsoa determinant on the health and life expectancy. Feeding on junkfoods is likely to cause chronic diseases while the vegetarians arelikely to have improved health and a longer life expectancy. The modeof nutrition varies from one area to another (Riley,2001).
Medicaltourism has gained popularity at high rate due to various reasons.One of the reasons is that it is saving people on their spending onhealth care. For instance, cardiac by-pass surgery in USA is 100000USD while in India it is 10000 USD thus saving an individualapproximately 90% of spending (Connell,2011).These organizations also offer excellent quality of medical carehence its overwhelming adoption. Access to the latest technology hasalso led to the increase in popularity of medical tourism in theworld today. Surgeon expertise as well as great convenience has alsoled to the overwhelming adoption of medical tourism (Stolley& Watson, 2012).The medical tourism is not a bad practice considering the benefitsattributed to it such cutting cost as well as accessing expertise andtechnology. However, the quality of services needs to be wellscrutinized before trusting these organizations (Hodgeset al., 2012).
Bradley,E. H., & Taylor, L. A. (2013). TheAmerican health care paradox: Why spending more is getting us less.
Connell,J. (2011). Medicaltourism.Wallingford, Oxfordshire: CABI.
Hodges,J. R., Turner, L., & Kimball, A. M. (2012). Risksand challenges in medical tourism: Understanding the global marketfor health services.Santa Barbara, Calif: Praeger.
Okorafor,O. A., & International Development Research Centre (Canada).(2010).Primaryhealthcare spending: Striving for equity under fiscal federalism.Cape Town, South Africa: UCT Press.
Riley,J. C. (2001). Risinglife expectancy: A global history.Cambridge [u.a.: Cambridge Univ. Press.
Stolley,K. S., & Watson, S. (2012). Medicaltourism: A reference handbook.Santa Barbara, Calif: ABC-CLIO.